Samsung Heavy Industries Company Ltd has agreed to pay more than $75 million in criminal penalties to resolve a U.S. investigation of a scheme to pay millions of dollars in bribes to officials in Brazil.
Samsung Heavy Industries entered into a deferred prosecution agreement with the Department in connection with a criminal information filed in the Eastern District of Virginia charging the company with conspiracy to violate the anti-bribery provisions of the FCPA.
Pursuant to its agreement with the Department, Samsung Heavy Industries has committed to pay a total criminal penalty of $75,481,600 – 50 percent ($37,740,800) of which will be paid to the United States within 10 business days of the deferred prosecution agreement and the remaining 50 percent ($37,740,800) of which will either be paid to Brazilian authorities pursuant to agreements between Samsung Heavy Industries and the Controladoria-Geral da União (CGU), Advogado-Geral da União (AGU) and Ministério Público Federal (MPF), or will be paid to the United States if at least $37,740,800 in payments are not made to the Brazilian authorities on or before Nov. 25, 2020.
In related proceedings in Brazil, Samsung Heavy Industries entered into a memorandum of understanding with the CGU and AGU and a complementary agreement for the negotiation of a leniency agreement with the MPF.
According to admissions by Samsung Heavy Industries, beginning in 2007 and continuing until 2013, the company conspired with others to violate the FCPA by corruptly providing approximately $20 million in commission payments to a Brazilian intermediary, knowing that portions of the money would be paid as bribes to officials at Petrobras, the Brazilian state-owned oil and state-controlled energy company, in order to secure improper business advantages and to cause Petrobras to enter into a contract to charter a drill ship that Samsung Heavy Industries was selling to a Houston-based offshore oil drilling company, which facilitated Samsung Heavy Industries executing the sale of the drill ship.
Samsung Heavy Industries took actions in furtherance of the bribery conspiracy from its branch office located in the United States. ■
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